Simmons Reports First Quarter Net Income of $22 Million

Published 4:31 PM ET Wed, 19 April 2017
Globe Newswire

SHARES

PINE BLUFF, Ark., April 19, 2017 (GLOBE NEWSWIRE) -- Simmons First National Corp. (NASDAQ:SFNC) today announced net income available to common shareholders of $22.1 million for the first quarter of 2017, a decrease of $1.4 million compared with the same quarter last year. Diluted earnings per share were $0.70, a decrease of $0.07.

Included in first quarter 2017 results were $412,000 in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $22.5 million for the quarter and diluted core earnings per share were $0.71.

“We are satisfied with our operating results during the first quarter,” said George A. Makris Jr., chairman and CEO. “We continue to experience excellent loan growth throughout our market. While our core expense control remains relatively stable, our non-interest income experienced some usual seasonal declines along with a softer mortgage market during the first quarter. As we prepare for the $10 billion asset threshold, we have managed to offset most of our increases in audit and regulatory affairs expenses with economies gained because of our size and scale.

“We are excited about our previously announced mergers. As we have indicated, Simmons Bank will enter new and very attractive markets as a result of the Bank SNB and Southwest Bank mergers and will be able to expand in our current markets with the First South Bank merger. We look forward to closing these mergers and integrating these new markets.”

Loans

Total loans, including those acquired, were $5.8 billion at March 31, 2017, an increase of $847 million, or 17.2 percent, compared with the same period in 2016. Legacy loans (all loans excluding acquired loans) grew $1.2 billion, or 33.4 percent. On a linked quarter basis, total loan growth was $144 million, including a seasonal reduction in credit card and agricultural production loans of $22.5 million.

Deposits

At March 31, 2017, total deposits were $6.8 billion, an increase of $709 million, or 11.7 percent, compared with the same period in 2016. Total non-time deposits were $5.5 billion, an increase of $743 million, or 15.5 percent, and comprised 82 percent of total deposits.

Net Interest Income

The company’s net interest income for the first quarter of 2017 was $72.4 million, an increase of $2.1 million, or 3.1 percent, from the same period of 2016. The net interest income was negatively impacted by a $3.7 million decline in yield accretion on acquired loans. Included in interest income was the yield accretion recognized on acquired loans of $4.4 million and $8.1 million for the first quarter of 2017 and 2016, respectively. Net interest margin was 4.04 percent for the quarter ended March 31, 2017, a 37 basis-point decline from the same quarter of 2016. The company’s core net interest margin, excluding the accretion, was 3.80 percent for the first quarter of 2017, a 12 basis-point decline from the same quarter of 2016.

Provision for Loan Losses

Provision for loan losses for the first quarter of 2017 was $4.3 million, an increase of $1.5 million compared with the first quarter of 2016. The provision increase was necessary in order to maintain an appropriate allowance for loan losses for the company’s growing legacy loan portfolio.

Non-Interest Income

Non-interest income for the first quarter was $30.1 million, an increase of $557,000 compared with the first quarter of 2016. The increase in non-interest income was due to additional trust income, service charge income, debit and credit card income resulting from internal growth and as a result of our most recent acquisition.

Non-Interest Expense

Non-interest expense for the first quarter of 2017 was $66.3 million, an increase of $4.5 million compared with the first quarter of 2016. Included in the quarter were $678,000 of merger-related expenses and branch rightsizing costs. Increases in occupancy expenses and other operating expenses are related to our most recent acquisition. The increases in professional services are related to the continued preparations for crossing the $10 billion asset threshold as a result of closing our three pending acquisitions.

Asset Quality

All acquired loans are recorded at their discounted net present value; therefore, they are excluded from the computations of the asset quality ratios for the legacy loan portfolio, except for their inclusion in total assets.

At March 31, 2017, the allowance for loan losses for legacy loans was $37.9 million. The company's allowance for loan losses on legacy loans at March 31, 2017 was 0.82 percent of total loans and 71 percent of non-performing loans. In the legacy portfolio, non-performing loans as a percent of total loans were 1.15 percent.

The allowance for loan losses for acquired loans was $435,000 and the acquired loan discount credit mark was $28.9 million. The allowances for loan losses and credit marks provide a total of $67.2 million of coverage, which equates to a total coverage ratio of 1.2 percent of gross loans. The ratio of credit mark and related allowance to acquired loans was 2.5 percent.

“In February, we executed a sale of 11 substandard loans, which were primarily acquired loans, with a net principal balance of $11 million,” Makris said. “We recognized a loss of $676,000 on this sale. We continually explore options to manage the problem assets remaining from the acquired FDIC and Metropolitan portfolios as well as options to further reduce problem loans and expect to execute additional sales of assets.”

Capital

At March 31, 2017, common stockholders' equity was $1.2 billion, book value per share was $37.30 and tangible book value per share was $24.51. The company's ratio of stockholders' equity to total assets was 13.6 percent and its ratio of tangible common equity to tangible assets was 9.4 percent.

Simmons First National Corporation

Simmons First National Corp. is a financial holding company, headquartered in Pine Bluff, Ark., with total assets of $8.6 billion conducting financial operations throughout Arkansas, Kansas, Missouri and Tennessee. The company through its subsidiaries offers comprehensive financial solutions delivered with a client-centric approach. The company’s common stock trades on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 11 a.m. CDT on Thursday, Apr. 20, 2017. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corp. conference call, conference ID 2974437. In addition, the call will be available live or in recorded version on the company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The company’s management uses these non-GAAP financial measures in their analysis of the company’s performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant non-core activities or nonrecurring transactions. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Statements in this news release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statement speaks only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements involve inherent risk and uncertainties. Various factors, including, but not limited to, economic conditions, credit quality, interest rates, loan demand and changes in the assumptions used in making the forward-looking statements, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect Simmons First National Corp.’s financial results is included in its Form 10-K filing with the Securities and Exchange Commission.

Simmons First National Corporation

SFNC

Consolidated End of Period Balance Sheets

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands)

ASSETS

Cash and non-interest bearing balances due from banks

$

103,875

$

117,007

$

112,572

$

96,037

$

118,468

Interest bearing balances due from banks

201,406

168,652

324,951

151,570

100,593

Federal funds sold

-

-

17,000

3,000

4,000

Cash and cash equivalents

305,281

285,659

454,523

250,607

223,061

Interest bearing balances due from banks - time

4,563

4,563

4,393

9,781

11,188

Investment securities - held-to-maturity

431,176

462,096

496,594

632,154

674,502

Investment securities - available-for-sale

1,257,813

1,157,354

1,024,206

821,372

857,673

Mortgage loans held for sale

9,754

27,788

28,069

30,529

24,563

Assets held in trading accounts

55

41

2,969

7,321

7,074

Loans:

Legacy loans

4,632,905

4,327,207

3,943,089

3,725,422

3,472,691

Allowance for loan losses

(37,865

)

(36,286

)

(34,094

)

(33,523

)

(32,681

)

Loans acquired (net of discount and allowance)

Net loans

5,739,331

5,596,604

5,367,193

4,980,334

4,897,380

Premises and equipment

221,880

199,359

192,523

183,362

192,327

Premises held for sale

4,611

6,052

6,732

6,167

2,364

Foreclosed assets

26,421

26,895

30,396

30,529

41,126

Interest receivable

26,089

27,788

27,390

24,150

23,545

Bank owned life insurance

139,439

138,620

138,298

130,943

130,092

Goodwill

350,035

348,505

348,769

327,686

327,686

Other intangible assets

51,408

52,959

54,268

50,329

51,783

Other assets

58,782

65,773

50,669

48,955

72,589

Total assets

$

8,626,638

$

8,400,056

$

8,226,992

$

7,534,219

$

7,536,953

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Non-interest bearing transaction accounts

$

1,554,675

$

1,491,676

$

1,473,420

$

1,283,426

$

1,274,816

Interest bearing transaction accounts and savings deposits

3,987,730

3,956,483

3,815,939

3,538,808

3,524,808

Time deposits less than $100,000

653,538

686,780

653,105

643,081

674,915

Time deposits greater than $100,000

592,345

600,280

674,917

562,888

605,236

Total deposits

6,788,288

6,735,219

6,617,381

6,028,203

6,079,775

Federal funds purchased and securities sold

under agreements to repurchase

110,007

115,029

124,289

103,038

97,429

Other borrowings

441,074

273,159

215,276

191,827

176,829

Subordinated debentures

60,503

60,397

60,290

60,184

60,077

Accrued interest and other liabilities

55,877

65,141

62,615

60,256

50,859

Total liabilities

7,455,749

7,248,945

7,079,851

6,443,508

6,464,969

Stockholders' equity:

Preferred stock

-

-

-

-

-

Common stock

314

313

313

304

303

Surplus

716,564

711,976

710,132

668,306

665,850

Undivided profits

468,309

454,034

434,579

417,863

402,265

Accumulated other comprehensive income (loss):

Unrealized appreciation (depreciation) on AFS securities

(14,298

)

(15,212

)

2,117

4,238

3,566

Total stockholders' equity

1,170,889

1,151,111

1,147,141

1,090,711

1,071,984

Total liabilities and stockholders' equity

$

8,626,638

$

8,400,056

$

8,226,992

$

7,534,219

$

7,536,953

Page 1

Simmons First National Corporation

SFNC

Consolidated Statements of Income - Quarter-to-Date

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands, except per share data)

INTEREST INCOME

Loans

$

68,728

$

70,887

$

65,078

$

63,009

$

66,678

Federal funds sold

5

11

19

17

10

Investment securities

9,451

8,700

7,774

8,499

8,506

Mortgage loans held for sale

126

230

299

295

278

Assets held in trading accounts

-

3

4

3

6

Interest bearing balances due from banks

117

234

244

77

144

TOTAL INTEREST INCOME

78,427

80,065

73,418

71,900

75,622

INTEREST EXPENSE

Time deposits

2,015

2,023

1,767

1,741

1,636

Other deposits

2,189

2,032

1,965

2,035

2,018

Federal funds purchased and securities

sold under agreements to repurchase

75

90

59

59

65

Other borrowings

1,194

1,034

1,048

938

1,128

Subordinated debentures

574

558

516

544

543

TOTAL INTEREST EXPENSE

6,047

5,737

5,355

5,317

5,390

NET INTEREST INCOME

72,380

74,328

68,063

66,583

70,232

Provision for loan losses

4,307

4,332

8,294

4,616

2,823

NET INTEREST INCOME AFTER PROVISION

FOR LOAN LOSSES

68,073

69,996

59,769

61,967

67,409

NON-INTEREST INCOME

Trust income

4,212

4,282

3,873

3,656

3,631

Service charges on deposit accounts

8,102

8,666

8,771

7,661

7,316

Other service charges and fees

2,197

4,026

3,261

2,718

2,867

Mortgage and SBA lending income

2,423

4,580

4,339

4,730

2,834

Investment banking income

690

472

1,131

1,181

687

Debit and credit card fees

7,934

8,027

7,825

7,688

7,200

Bank owned life insurance income

818

895

606

826

997

Gain on sale of securities, net

63

1,445

315

3,759

329

Other income

3,621

3,722

6,755

4,669

3,642

TOTAL NON-INTEREST INCOME

30,060

36,115

36,876

36,888

29,503

NON-INTEREST EXPENSE

Salaries and employee benefits

35,536

33,797

31,784

33,103

34,773

Occupancy expense, net

4,663

4,516

4,690

4,990

4,471

Furniture and equipment expense

4,443

4,387

4,272

4,077

3,947

Other real estate and foreclosure expense

589

679

1,849

967

966

Deposit insurance

680

89

1,136

1,096

1,148

Merger-related costs

524

2,846

1,524

372

93

Other operating expenses

19,887

20,411

17,179

19,532

16,391

TOTAL NON-INTEREST EXPENSE

66,322

66,725

62,434

64,137

61,789

NET INCOME BEFORE INCOME TAXES

31,811

39,386

34,211

34,718

35,123

Provision for income taxes

9,691

12,415

10,782

11,809

11,618

NET INCOME

22,120

26,971

23,429

22,909

23,505

Preferred stock dividends

-

-

-

-

24

NET INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

22,120

$

26,971

$

23,429

$

22,909

$

23,481

BASIC EARNINGS PER SHARE

$

0.71

$

0.86

$

0.77

$

0.75

$

0.77

DILUTED EARNINGS PER SHARE

$

0.70

$

0.85

$

0.76

$

0.75

$

0.77

Page 2

Simmons First National Corporation

SFNC

Consolidated Risk-Based Capital

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands)

Tier 1 capital

Stockholders' equity

$

1,170,889

$

1,151,111

$

1,147,141

$

1,090,711

$

1,071,984

Trust preferred securities, net allowable

60,503

60,397

60,290

60,184

60,077

Disallowed intangible assets, net of deferred tax

(361,944

)

(354,028

)

(354,582

)

(334,395

)

(335,166

)

Unrealized loss (gain) on AFS securities

14,298

15,212

(2,117

)

(4,238

)

(3,566

)

Other

-

15

-

-

-

Total Tier 1 capital

883,746

872,707

850,732

812,262

793,329

Tier 2 capital

Qualifying allowance for loan losses and

reserve for unfunded commitments

41,303

40,241

38,050

37,240

36,398

Total Tier 2 capital

41,305

40,241

38,050

37,240

36,398

Total risk-based capital

$

925,051

$

912,948

$

888,782

$

849,502

$

829,727

Common equity

Tier 1 capital

$

883,746

$

872,707

$

850,732

$

812,262

$

793,329

Less: Trust preferred securities

(60,503

)

(60,397

)

(60,290

)

(60,184

)

(60,077

)

Total common equity

$

823,243

$

812,310

$

790,442

$

752,078

$

733,252

Risk weighted assets

$

6,425,150

$

6,039,034

$

5,724,052

$

5,343,355

$

5,293,395

Adjusted average assets for leverage ratio

$

8,076,525

$

7,966,681

$

7,355,702

$

7,185,633

$

7,167,839

Ratios at end of quarter

Equity to assets

13.57

%

13.70

%

13.94

%

14.48

%

14.22

%

Tangible common equity to tangible assets (1)

9.35

%

9.37

%

9.51

%

9.96

%

9.68

%

Common equity Tier 1 ratio (CET1)

12.81

%

13.45

%

13.81

%

14.08

%

13.85

%

Tier 1 leverage ratio

10.94

%

10.95

%

11.57

%

11.30

%

11.07

%

Tier 1 risk-based capital ratio

13.75

%

14.45

%

14.86

%

15.20

%

14.99

%

Total risk-based capital ratio

14.40

%

15.12

%

15.53

%

15.90

%

15.67

%

(1) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Page 3

Simmons First National Corporation

SFNC

Consolidated Loans and Investments

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands)

Legacy Loan Portfolio - End of Period (1)

Consumer

Credit cards

$

171,947

$

184,591

$

175,032

$

171,468

$

167,803

Other consumer

349,200

303,972

275,947

248,018

227,480

Total consumer

521,147

488,563

450,979

419,486

395,283

Real Estate

Construction

365,051

336,759

304,082

330,666

300,042

Single-family residential

957,717

904,245

841,958

785,289

746,754

Other commercial

1,959,677

1,787,075

1,521,132

1,414,663

1,327,372

Total real estate

3,282,445

3,028,079

2,667,172

2,530,618

2,374,168

Commercial

Commercial

657,606

639,525

607,738

577,771

551,695

Agricultural

141,125

150,378

203,529

187,047

143,033

Total commercial

798,731

789,903

811,267

764,818

694,728

Other

30,582

20,662

13,671

10,500

8,512

Total Loans

$

4,632,905

$

4,327,207

$

3,943,089

$

3,725,422

$

3,472,691

(1) Excludes all acquired loans.

Investment Securities - End of Period

Held-to-Maturity

U.S. Government agencies

$

68,895

$

76,875

$

80,849

$

199,505

$

223,484

Mortgage-backed securities

18,743

19,773

21,454

22,612

23,734

State and political subdivisions

341,854

362,532

391,495

407,273

424,586

Other securities

1,684

2,916

2,796

2,765

2,698

Total held-to-maturity

431,176

462,096

496,594

632,155

674,502

Available-for-Sale

U.S. Treasury

$

-

$

300

$

63,985

$

4,305

$

4,302

U.S. Government agencies

142,356

137,771

148,781

58,113

78,308

Mortgage-backed securities

927,277

868,324

699,748

652,425

722,982

State and political subdivisions

130,747

102,943

67,019

64,836

11,260

FHLB stock

19,149

12,235

11,235

8,781

7,838

Other securities

38,285

35,781

33,438

32,911

32,983

Total available-for-sale

1,257,814

1,157,354

1,024,206

821,371

857,673

Total investment securities

$

1,688,990

$

1,619,450

$

1,520,800

$

1,453,526

$

1,532,175

Fair value - HTM investment securities

$

435,701

$

465,960

$

508,910

$

647,293

$

686,835

Investment Securities - QTD Average

Taxable securities

$

1,185,794

$

1,146,703

$

963,150

$

1,059,802

$

1,067,302

Tax exempt securities

455,481

467,757

466,782

443,492

439,370

Total investment securities - QTD average

$

1,641,275

$

1,614,460

$

1,429,932

$

1,503,294

$

1,506,672

Page 4

Simmons First National Corporation

SFNC

Consolidated Loans and Credit Coverage

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands)

LOANS

Legacy loans

$

4,632,905

$

4,327,207

$

3,943,089

$

3,725,422

$

3,472,691

Allowance for loan losses (legacy loans)

(37,865

)

(36,286

)

(34,094

)

(33,523

)

(32,681

)

Legacy loans (net of allowance)

4,595,040

4,290,921

3,908,995

3,691,899

3,440,010

Loans acquired

1,173,667

1,342,099

1,502,051

1,327,683

1,503,482

Credit discount

(28,941

)

(35,462

)

(42,899

)

(38,294

)

(45,158

)

Allowance for loan losses (loans acquired)

(435

)

(954

)

(954

)

(954

)

(954

)

Loans acquired (net of discount and allowance)

1,144,291

1,305,683

1,458,198

1,288,435

1,457,370

Net loans

$

5,739,331

$

5,596,604

$

5,367,193

$

4,980,334

$

4,897,380

Loan Coverage Ratios

Allowance for loan losses to legacy loans

0.82

%

0.84

%

0.86

%

0.90

%

0.94

%

Discount for credit losses and allowance on loans acquired

to total loans acquired plus discount for credit losses

and allowance on loans acquired (non-GAAP) (1)

2.50

%

2.71

%

2.92

%

2.96

%

3.07

%

Total allowance and credit coverage (non-GAAP) (1)

1.16

%

1.28

%

1.43

%

1.44

%

1.58

%

(1) Calculations of the non-GAAP loan coverage ratios and the reconciliations to GAAP are included in the schedules accompanying this release.

Page 5

Simmons First National Corporation

SFNC

Consolidated Allowance and Asset Quality

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands)

Allowance for Loan Losses (Legacy Loans)

Balance, beginning of quarter

$

36,286

$

34,094

$

33,523

$

32,681

$

31,351

Loans charged off

Credit cards

1,044

935

699

702

859

Other consumer

1,174

493

600

489

393

Real estate

656

167

6,297

824

229

Commercial

292

913

284

2,283

476

Total loans charged off

3,166

2,508

7,880

4,298

1,957

Recoveries of loans previously charged off

Credit cards

236

213

199

253

242

Other consumer

690

158

106

149

103

Real estate

232

73

55

111

112

Commercial

30

28

12

318

7

Total recoveries

1,188

472

372

831

464

Net loans charged off

1,978

2,036

7,508

3,467

1,493

Provision for loan losses

3,557

4,228

8,079

4,309

2,823

Balance, end of quarter

$

37,865

$

36,286

$

34,094

$

33,523

$

32,681

Non-performing assets (1) (2)

Non-performing loans

Nonaccrual loans

52,913

39,104

37,392

43,305

34,244

Loans past due 90 days or more

231

299

144

227

881

Total non-performing loans

53,144

39,403

37,536

43,532

35,125

Other non-performing assets

Foreclosed assets held for sale (2)

26,421

26,895

30,396

30,529

41,126

Other non-performing assets

352

471

621

519

256

Total other non-performing assets

26,773

27,366

31,017

31,048

41,382

Total non-performing assets

$

79,917

$

66,769

$

68,553

$

74,580

$

76,507

Performing TDRs (troubled debt restructurings)

$

10,833

$

10,998

$

13,604

$

10,887

$

10,759

Ratios (1) (2)

Allowance for loan losses to total loans

0.82

%

0.84

%

0.86

%

0.90

%

0.94

%

Allowance for loan losses to non-performing loans

71

%

92

%

91

%

77

%

93

%

Non-performing loans to total loans

1.15

%

0.91

%

0.95

%

1.17

%

1.01

%

Non-performing assets (including performing TDRs)

to total assets

1.05

%

0.93

%

1.00

%

1.13

%

1.16

%

Non-performing assets to total assets

0.93

%

0.79

%

0.83

%

0.99

%

1.02

%

Annualized net charge offs to total loans

0.18

%

0.20

%

0.82

%

0.39

%

0.18

%

Annualized net credit card charge offs to

total credit card loans

1.84

%

1.66

%

1.14

%

1.07

%

1.46

%

Annualized net charge offs to total loans

(excluding credit cards)

0.11

%

0.14

%

0.81

%

0.36

%

0.11

%

(1) Excludes all acquired loans, except for their inclusion in total assets.

(2) Includes acquired foreclosed assets held for sale.

Page 6

Simmons First National Corporation

SFNC

Consolidated - Average Balance Sheet and Net Interest Income Analysis

For the Quarters Ended

(Unaudited)

Three Months Ended Mar 2017

Three Months Ended Dec 2016

Three Months Ended Mar 2016

($ in thousands)

Average Balance

Income/ Expense

Yield/ Rate

Average Balance

Income/ Expense

Yield/ Rate

Average Balance

Income/ Expense

Yield/ Rate

ASSETS

Earning assets:

Interest bearing balances due from banks

$

131,079

$

117

0.36

%

$

243,396

$

234

0.38

%

$

167,381

$

144

0.35

%

Federal funds sold

249

5

8.14

%

5,381

11

0.81

%

1,839

10

2.19

%

Investment securities - taxable

1,292,441

6,477

2.03

%

1,236,864

5,681

1.83

%

1,076,855

5,311

1.98

%

Investment securities - non-taxable (FTE)

348,834

4,884

5.68

%

377,596

4,959

5.22

%

429,817

5,249

4.91

%

Mortgage loans held for sale

11,473

126

4.45

%

23,307

230

3.93

%

26,616

278

4.20

%

Assets held in trading accounts

48

-

0.00

%

1,774

3

0.67

%

5,196

6

0.46

%

Loans, including acquired loans

5,685,585

68,783

4.91

%

5,484,918

70,941

5.15

%

4,889,685

66,708

5.49

%

Total interest earning assets (FTE)

7,469,709

80,392

4.36

%

7,373,236

82,059

4.43

%

6,597,389

77,706

4.74

%

Non-earning assets

944,761

935,222

901,796

Total assets

$

8,414,470

$

8,308,458

$

7,499,185

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest bearing liabilities:

Interest bearing transaction and

savings accounts

$

3,950,169

$

2,189

0.22

%

$

3,895,367

$

2,032

0.21

%

$

3,484,571

$

2,018

0.23

%

Time deposits

1,262,430

2,015

0.65

%

1,292,961

2,023

0.62

%

1,303,614

1,636

0.50

%

Total interest bearing deposits

5,212,599

4,204

0.33

%

5,188,328

4,055

0.31

%

4,788,185

3,654

0.31

%

Federal funds purchased and securities

sold under agreement to repurchase

111,474

75

0.27

%

124,323

90

0.29

%

113,551

65

0.23

%

Other borrowings

345,664

1,194

1.40

%

203,615

1,034

2.02

%

184,000

1,128

2.47

%

Subordinated debentures

60,452

574

3.85

%

60,345

558

3.68

%

60,109

543

3.63

%

Total interest bearing liabilities

5,730,189

6,047

0.43

%

5,576,611

5,737

0.41

%

5,145,845

5,390

0.42

%

Non-interest bearing liabilities:

Non-interest bearing deposits

1,466,501

1,515,853

1,225,311

Other liabilities

51,307

59,061

53,240

Total liabilities

7,247,997

7,151,525

6,424,396

Stockholders' equity

1,166,473

1,156,933

1,074,789

Total liabilities and stockholders' equity

$

8,414,470

$

8,308,458

$

7,499,185

Net interest income (FTE)

$

74,345

$

76,322

$

72,316

Net interest spread (FTE)

3.93

%

4.02

%

4.32

%

Net interest margin (FTE) - quarter-to-date

4.04

%

4.12

%

4.41

%

Net interest margin (FTE) - year-to-date

4.04

%

4.19

%

4.41

%

Core net interest margin (FTE) - quarter-to-date (1)

3.80

%

3.76

%

3.92

%

Core loan yield (FTE) - quarter-to-date (1)

4.59

%

4.67

%

4.82

%

Core net interest margin (FTE) - year-to-date (1)

3.80

%

3.83

%

3.92

%

Core loan yield (FTE) - year-to-date (1)

4.59

%

4.72

%

4.82

%

(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Page 7

Simmons First National Corporation

SFNC

Consolidated - Selected Financial Data

For the Quarters Ended

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Unaudited)

2017

2016

2016

2016

2016

($ in thousands, except share data)

QUARTER-TO-DATE

Financial Highlights - GAAP

Net Income

$

22,120

$

26,971

$

23,429

$

22,909

$

23,481

Diluted earnings per share

0.70

0.85

0.76

0.75

0.77

Return on average assets

1.07

%

1.29

%

1.21

%

1.22

%

1.26

%

Return on average common equity

7.69

%

9.27

%

8.36

%

8.48

%

8.87

%

Return on tangible common equity

12.22

%

14.71

%

13.26

%

13.52

%

14.30

%

Net interest margin (FTE)

4.04

%

4.12

%

4.08

%

4.14

%

4.41

%

FTE adjustment

1,965

1,994

1,969

1,675

2,084

Amortization of intangibles

1,550

1,533

1,503

1,451

1,455

Amortization of intangibles, net of taxes

942

932

913

882

884

Average diluted shares outstanding

31,612,900

31,592,713

30,843,714

30,452,285

30,481,604

Cash dividends declared per common share

0.25

0.24

0.24

0.24

0.24

Financial Highlights - Core (non-GAAP)

Core earnings (excludes non-core items) (1)

$

22,532

$

28,751

$

24,382

$

25,091

$

23,185

Diluted core earnings per share (1)

0.71

0.91

0.79

0.82

0.76

Core net interest margin (FTE) (2)

3.80

%

3.76

%

3.79

%

3.86

%

3.92

%

Efficiency ratio (1)

60.92

%

55.47

%

53.94

%

57.33

%

58.73

%

Core return on average assets (1)

1.09

%

1.38

%

1.26

%

1.34

%

1.24

%

Core return on average common equity (1)

7.83

%

9.89

%

8.71

%

9.29

%

8.75

%

Core return on tangible common equity (1)

12.44

%

15.65

%

13.78

%

14.76

%

14.13

%

YEAR-TO-DATE

Financial Highlights - GAAP

Net Income

$

22,120

$

96,790

$

69,819

$

46,390

$

23,481

Diluted earnings per share

0.70

3.13

2.28

1.52

0.77

Return on average assets

1.07

%

1.25

%

1.23

%

1.24

%

1.26

%

Return on average common equity

7.69

%

8.75

%

8.57

%

8.67

%

8.87

%

Return on tangible common equity

12.22

%

13.92

%

13.68

%

13.90

%

14.30

%

Net interest margin (FTE)

4.04

%

4.19

%

4.21

%

4.28

%

4.41

%

FTE adjustment

1,965

7,722

5,728

3,759

2,084

Amortization of intangibles

1,550

5,942

4,409

2,906

1,455

Amortization of intangibles, net of taxes

942

3,611

2,679

1,766

884

Average diluted shares outstanding

31,612,900

30,963,546

30,656,882

30,438,939

30,481,604

Cash dividends declared per common share

0.25

0.96

0.72

0.48

0.24

Financial Highlights - Core (non-GAAP)

Core earnings (excludes non-core items) (1)

$

22,532

$

101,409

$

72,658

$

48,276

$

23,185

Diluted core earnings per share (1)

0.71

3.28

2.37

1.59

0.76

Core net interest margin (FTE) (2)

3.80

%

3.83

%

3.86

%

3.89

%

3.92

%

Efficiency ratio (1)

60.92

%

56.32

%

56.62

%

58.03

%

58.73

%

Core return on average assets (1)

1.09

%

1.31

%

1.28

%

1.29

%

1.24

%

Core return on average common equity (1)

7.83

%

9.17

%

8.91

%

9.02

%

8.75

%

Core return on tangible common equity (1)

12.44

%

14.56

%

14.22

%

14.45

%

14.13

%

END OF PERIOD

Book value per share

$

37.30

$

36.80

$

36.69

$

35.86

$

35.35

Tangible book value per share

24.51

23.97

23.80

23.43

22.84

Shares outstanding

31,388,357

31,277,723

31,267,614

30,415,980

30,324,499

Full-time equivalent employees

1,876

1,875

1,985

1,880

1,931

Total number of ATM's

187

186

186

174

185

Total number of financial centers

151

150

150

140

149

(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.